As of this week, many small Canadian exporters may be eligible for rebates of some U.S. tariffs under a new system put in place by the U.S. government following the recent Supreme Court decision, says the Canadian Federation of Independent Business (CFIB).
Canadian businesses that served as the “Importer of Record” and paid U.S. tariffs on non-CUSMA compliant goods under the International Emergency Economic Powers Act (IEEPA) between February 4, 2025, and February 24, 2026, may now be eligible for refunds, said the national organization.
Approximately one-third of small Canadian exporters faced tariffs on goods that did not qualify for the CUSMA exemption. One quarter (26%) of these firms were the Importer of Record and should qualify for these rebates. Unfortunately, other small Canadian exporters lowered their prices for or cost-shared with their U.S. customers in order to keep the business affected by the tariff and will not be eligible for this relief, explained the CFIB.
“While it’s good news that some Canadian exporters may get over a year’s worth of tariff revenue back, it’s not an easy system to navigate. Canadian firms will need a U.S. customs account, a U.S. bank account, and may have to work with their customs brokers to get a refund,” said Dan Kelly, CFIB president.
“In addition, these rebates will not help those businesses affected by sectoral tariffs, including steel and aluminum, cars, softwood lumber or furniture. Sectoral tariffs are, sadly, still in place and are having a deep impact on many Canadian small firms. This mess is a reminder that Canada-U.S. trade is not just a big business issue and progress on a renewed CUSMA agreement can’t come soon enough.”
CFIB is providing guidance to small businesses on this process on its website. The CFIB is Canada’s largest association of small and medium-sized businesses with 103,000 members across every industry and region.
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